2(1)This paragraph applies where as regards any person (“P”) and a tax year—U.K.
(a)payments on account become payable by P, and
(b)an overpayment becomes repayable to P.
(2)Late payment interest is payable only on the amount by which each of the payments on account exceeds 50% of the overpayment.
(3)In determining for the purposes of this paragraph what amount (if any) is repayable to P as an overpayment—
(a)no account is to be taken of any amount which has been paid on account otherwise than under section 59A(2) of TMA 1970, and
(b)no account is to be taken of any amount which is payable by way of capital gains tax.
(4)In this paragraph—
“overpayment” means an amount repayable in accordance with section 59B(3), (4) or (5) of TMA 1970;
“payment on account” means an amount payable in accordance with section 59A(2) of that Act.